If the eastern branch and the western branch worked together, the eastern branch could loan its $15

Question:

If the eastern branch and the western branch worked together, the eastern branch could loan its $15 million to the western branch. Nevertheless, one could argue that the branches could not take advantage of interest rate differentials or expected effects among currencies. Given the data provided in this example, would you recommend that the two branches make their short-term investment or financing decisions independently, or should the eastern branch lend its excess cash to the western branch? Explain.

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...